Description of business: US Alliance Corporation ("USAC") was formed as a Kansas corporation on April 24, 2009 to raise capital to form a new Kansas-based life insurance company. Our offices are located at 1303 SW First American Place, Suite 200, Topeka, Kansas 66604. Our telephone number is 785-228-0200 and our website address is www.usalliancecorporation.com.

USAC has five wholly-owned operating subsidiaries. US Alliance Life and Security Company ("USALSC") was incorporated June 9, 2011, to serve as our life insurance company. US Alliance Marketing Corporation ("USAMC") was incorporated April 23, 2012, to serve as a marketing resource. US Alliance Investment Corporation ("USAIC") was incorporated April 23, 2012 to serve as investment manager for USAC and its subsidiaries. Dakota Capital Life Insurance Company (“DCLIC”), was acquired on August 1, 2017 when USAC merged with Northern Plains Capital Corporation (“NPCC”). US Alliance Life and Security Company - Montana ("USALSC-Montana"), was acquired December 14, 2018. Both DCLIC and USALSC-Montana are wholly-owned subsidiaries of USALSC. Unless the context otherwise indicates, references in this registration statement to "we", "us", "our", or the "Company" refer collectively to USAC and its subsidiaries.

The Company terminated its initial public offering on February 24, 2013. During the balance of 2013, the Company achieved approval of an array of life insurance and annuity products, began development of various distribution channels and commenced insurance operations and product sales. The Company sold its first insurance product on May 1, 2013. The Company continued to expand its product offerings and distribution channels throughout 2014 and 2015. On February 24, 2015, the Company commenced a warrant exercise offering set to expire on February 24, 2016. On February 24, 2016, the Company extended the offering until February 24, 2017 and made additional shares available for purchase. All outstanding warrants associated with this offering expired on April 1, 2016. The Company further extended this offering to February 24, ~~2023.~~2024. During the fourth quarter of 2017, the Company began a private placement offering to accredited investors in the state of North Dakota.

USALSC received a Certificate of Authority from the Kansas Insurance Department ("KID") effective January 2, 2012, and sold its first insurance product on May 1, 2013. DCLIC received a Certificate of Authority from the North Dakota Insurance Department ("NDID") effective January 24, 2012.

The Company’s business model also anticipates the acquisition by USAC and/or USALSC of other insurance and insurance related companies, including third-party administrators, marketing organizations, and rights to other blocks of insurance business through reinsurance or other transactions.

Basis of presentation: The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. In the opinion of management, all adjustments (consisting primarily of normal recurring accruals) considered necessary for a fair presentation of the results for the interim periods have been included.

The results of operation for the three ~~and~~ ~~six~~months ended ~~June~~March ~~30,~~31, ~~2022~~2023 are not necessarily indicative of the results to be expected for the year ended December 31, ~~2022~~2023 or for any other interim period or for any other future year. Certain financial information which is normally included in notes to financial statements prepared in accordance with US GAAP, but which are not required for interim reporting purposes, has been condensed or omitted. The accompanying financial statements and notes thereto should be read in conjunction with the financial statements and notes thereto included in USAC’s report on Form 10-K and amendments thereto for the year ended December 31, ~~2021.~~

Principles of consolidation: The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated from the consolidated financial statements.

Area of Operation: US Alliance Life and Security Company is authorized to operate in the states of Kansas, North Dakota, Missouri, Nebraska, Oklahoma, Wyoming, South Dakota, Montana, Utah, Kentucky, Alabama, Mississippi, Ohio, and ~~Wyoming.~~New Mexico. DCLIC is authorized to operate in the states of North Dakota and South Dakota. USALSC-Montana is authorized to operate in the state of Montana.

Reclassifications: Certain reclassifications of a minor nature have been made to prior-year balances to conform to current-year presentation with no net impact to net loss/income or equity.

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US Alliance Corporation

Notes to Consolidated Financial Statements (unaudited)

Common stock and income (loss) per share: The par value for common stock is $0.10 per share with 20,000,000 shares authorized. As of ~~June 30, 2022,~~March 31, 2023, and December 31, ~~2021,~~2022, USAC had 7,746,922 ~~and 7,745,404~~ common shares issued and ~~outstanding, respectively.~~outstanding.

Income (loss) per share attributable to USAC’s common stockholders were computed based on the net ~~income (loss)~~loss and the weighted average number of shares outstanding during each year. The weighted average number of shares outstanding during the ~~six~~ ~~months ended~~ ~~June 30, 2022~~ ~~and~~ ~~2021~~ ~~were 7,746,069 and 7,742,384 shares, respectively. The weighted average number of shares outstanding during the~~ three months ended ~~June 30, 2022~~March 31, 2023 and ~~2021~~2022 were ~~7,746,755~~7,746,922 and ~~7,743,517~~7,745,827 shares, respectively. Potential common shares are excluded from the computation when their effect is anti-dilutive. ~~Basic~~There was no difference between basic and diluted net ~~income (loss)~~loss per common share ~~is the same~~ for the~~six~~ ~~and~~ three months ended ~~June 30, 2022~~March 31, 2023 and ~~2021.~~

2022.

New accounting standards:

~~Leases~~

In ~~February~~ ~~2016,~~ ~~the FASB issued updated guidance to require lessees to recognize a right-to-use asset and a lease liability for leases with terms of more than~~ 12 ~~months. The updated guidance retains the~~ ~~two~~ classifications of a lease as either an operating or finance lease (previously referred to as a capital lease). Both lease classifications require the lessee to record the right-to-use asset and the lease liability based upon the present value of cash flows. Finance leases will reflect the financial arrangement by recognizing interest expense on the lease liability separately from the amortization expense of the right-to-use asset. Operating leases will recognize lease expense (with no ~~separate recognition of interest expense) on a straight-line basis over the term of the lease. The accounting by lessors is~~ ~~not~~ significantly changed by the updated guidance. The updated guidance requires expanded qualitative and quantitative disclosures, including additional information about the amounts recorded in the financial statements.

~~The adoption of this guidance did~~ ~~not~~ ~~have a material effect on the Company’s results of operations, financial position or liquidity as the Company does~~ ~~not~~ ~~have any significant leases as a lessee.~~

Income Taxes - Simplifying the Accounting for Income Taxes

In December 2019, the FASB issued updated guidance (Accounting Standards Update 2019-12) for the accounting for income taxes. The updated guidance is intended to simplify the accounting for income taxes by removing several exceptions contained in existing guidance and amending other existing guidance to simplify several other income tax accounting matters. The updated guidance was effective for the quarters ending and after March 31, 2021. The adoption of this guidance did not have a material effect on the Company’s results of operations, financial position or liquidity.

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued updated guidance for the accounting for credit losses for financial instruments. The updated guidance applies a new credit loss model (current expected credit losses or CECL) for determining credit-related impairments for financial instruments measured at amortized cost (e.g. reinsurance recoverables) and requires an entity to estimate the credit losses expected over the life of an exposure or pool of exposures. The estimate of expected credit losses should consider historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. The expected credit losses, and subsequent adjustments to such losses, will be recorded through an allowance account that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the consolidated balance sheet at the amount expected to be collected.

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US Alliance Corporation

Notes to Consolidated Financial Statements (unaudited)

The updated guidance also amends the current other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists.

The updated guidance was effective for reporting periods beginning after December 15, 2019. Early adoption was permitted for reporting periods beginning after December 15, 2018. AsThe Company qualifed as an emerging growth ~~company, the Company has~~comapny prior to December 31, 2022 and as such, had elected to defer implementation of this standard to fiscal years beginning after December 15, 2022. The ~~Company will~~adoption of this guidance is reflected in the Consolidated Statements of Changes in Shareholders Equity and was not ~~be able to determine the impact that the updated guidance will have on its results of operations, financial position or liquidity until the updated guidance is adopted.~~material.

Targeted Improvements to the Accounting for Long-Duration Contracts

In August 2018, the FASB issued ASU 2018-12 “Targeted Improvements to the Accounting for Long-Duration Contracts.” ASU 2018-12 requires periodic reassessment of actuarial and discount rate assumptions used in the valuation of policyholder liabilities and deferred acquisition costs arising from the issuance of long-duration insurance and reinsurance contracts, with the effects of the changes in cash flow assumptions reflected in earnings and the effects of changes in discount rate assumptions reflected in other comprehensive income. Under current accounting guidance, the actuarial and discount rate assumptions are set at the contract inception date and not subsequently changed, except in limited circumstances. ASU 2018-12 also requires new disclosures and is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. We are evaluating the effect this standard will have on our Consolidated Financial Statements.

All other new accounting standards and updates of existing standards issued through the date of this filing were considered by management and did not relate to accounting policies and procedures pertinent or material to the Company at this time.

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US Alliance Corporation

Notes to Consolidated Financial Statements (unaudited)

Note 2.Investments

Fixed Maturity

The amortized cost and fair value of available for sale investments as of ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 is as follows:

June 30, 2022

Cost or

Gross

Gross

Amortized

Unrealized

Unrealized

Cost

Gains

Losses

Fair Value

Available for sale:

(unaudited)

Fixed maturities:

US Treasury securities
$ 303,451 $ 55,858 $ 0 $ 359,309
Corporate bonds
19,563,739 11,855 (2,344,887 ) 17,230,707
Municipal bonds
5,911,439 36,258 (386,509 ) 5,561,188
Redeemable preferred stock
4,044,005 0 (495,473 ) 3,548,532
Mortgage backed and asset backed securities
6,065,767 1,373 (568,668 ) 5,498,472
Total available for sale
$ 35,888,401 $ 105,344 $ (3,795,537 ) $ 32,198,208

										March 31, 2023
	December 31, 2021									Cost or		Gross		Gross
	Cost or		Gross		Gross					Amortized		Unrealized		Unrealized
	Amortized		Unrealized		Unrealized					Cost		Gains		Losses			Fair Value
	Cost		Gains		Losses			Fair Value		(unaudited)
Available for sale:
Fixed maturities:
US Treasury securities	$	303,195	$	144,570	$	0		$	447,765	$	781,660	$	895	$	(41,739	)	$	740,816
Corporate bonds		19,397,461		2,101,518		(177,700	)		21,321,279		18,991,120		1,175		(2,643,662	)		16,348,633
Municipal bonds		6,306,387		671,263		(14,292	)		6,963,358		6,223,405		8,958		(582,559	)		5,649,804
Redeemable preferred stock		3,612,625		29,995		(21,094	)		3,621,526		3,871,039		587		(445,298	)		3,426,328
Term loans											18,141,181		164,592		(150,865	)		18,154,908
Mortgage backed and asset backed securities		5,636,371		22,617		(70,259	)		5,588,729		22,210,519		258,327		(1,072,670	)		21,396,176
Total available for sale	$	35,256,039	$	2,969,963	$	(283,345	)	$	37,942,657	$	70,218,924	$	434,534	$	(4,936,793	)	$	65,716,665

	December 31, 2022
	Cost or		Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
Available for sale:
Fixed maturities:
US Treasury securities	$	993,805	$	36,313	$	(5,031	)	$	1,025,087
Corporate bonds		19,018,738		722		(3,150,382	)		15,869,078
Municipal bonds		6,228,636		-		(808,227	)		5,420,409
Redeemable preferred stock		3,875,526		-		(519,911	)		3,355,615
Term loans		18,086,124		209,989		(146,395	)		18,149,718
Mortgage backed and asset backed securities		22,412,895		157,795		(1,074,520	)		21,496,170
Total available for sale	$	70,615,724	$	404,819	$	(5,704,466	)	$	65,316,077

The amortized cost and fair value of debt securities as of ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

									As of March 31, 2023				As of December 31, 2022
	As of June 30, 2022				As of December 31, 2021				Amortized Cost		Fair Value		Amortized Cost		Fair Value
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		(unaudited)
Amounts maturing in:	(unaudited)
One year or less	$	408,288	$	413,641	$	0	$	0	$	100,631	$	99,638	$	442,846	$	450,461
After one year through five years		1,767,797		1,730,772		1,987,421		2,087,132		17,148,985		17,104,575		17,048,721		17,035,270
After five years through ten years		2,434,768		2,401,025		2,540,089		2,865,020		5,563,633		5,469,445		5,498,364		5,340,498
More than 10 years		21,167,776		18,605,766		21,479,533		23,780,250		21,324,117		18,220,503		21,337,372		17,638,063
Redeemable preferred stocks		4,044,005		3,548,532		3,612,625		3,621,526		3,871,039		3,426,328		3,875,526		3,355,615
Mortgage backed and asset backed securities		6,065,767		5,498,472		5,636,371		5,588,729		22,210,519		21,396,176		22,412,895		21,496,170
Total amortized cost and fair value	$	35,888,401	$	32,198,208	$	35,256,039	$	37,942,657	$	70,218,924	$	65,716,665	$	70,615,724	$	65,316,077

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US Alliance Corporation

Notes to Consolidated Financial Statements (unaudited)

~~Proceeds from the sale of securities, maturities, and asset paydowns in the~~ ~~six~~ ~~months ended~~ ~~June 30, 2022~~ ~~and~~ ~~2021~~ ~~were $4,170,514 and $2,910,833, respectively. Realized gains and losses related to the sale of securities are summarized as follows:~~

Six Months Ended June 30,

(unaudited)

2022

2021

Gross gains
$ 3,164 $ 216,011
Gross losses
(2,541 ) (398 )
Realized gains
$ 623 $ 215,613

Proceeds from the sale of securities, maturities, and asset paydowns in the three months ended ~~June 30, 2022~~March 31, 2023 and ~~2021~~2022 were ~~$1,128,044~~$1,736,118 and ~~$2,550,646,~~$3,042,470, respectively. With the implementation of CECL, changes in the allowance for credit losses is included in net gains (losses). Realized gains and losses related to the sale of securities and net credit losses recognized in income are summarized as follows:

	Three Months Ended June 30,					Three Months Ended March 31,
	(unaudited)					(unaudited)
	2022		2021			2023			2022
Gross gains	$	1,264	$	163,220		$	188,777		$	1,900
Gross losses		0		(3	)		(3,692	)		(2,541	)
Net security losses	$	1,264	$	163,217
Realized gains (losses)						$	185,085		$	(641	)

Mortgage loans on real estate
Decrease in allowance for credit losses						$	13,225		$	-

Net gains (losses) realized on the sale of securities and net credit losses recognized in operations						$	198,310		$	(641	)

Gross unrealized losses by duration are summarized as follows:

	Less than 12 months					Greater than 12 months					Total					Less than 12 months					Greater than 12 months					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized			Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Loss			Value		Loss			Value		Loss			Value		Loss			Value		Loss			Value		Loss
June 30, 2022
March 31, 2023																(unaudited)
Available for sale:	*(unaudited)*
Fixed maturities:
US Treasury securities																$	538,754	$	(41,739	)	$	-	$	-		$	538,754	$	(41,739	)
Corporate bonds	$	13,035,236	$	(1,427,669	)	$	2,833,974	$	(917,218	)	$	15,869,210	$	(2,344,887	)		8,676,598		(810,883	)		7,302,004		(1,832,779	)		15,978,602		(2,643,662	)
Municipal bonds		4,072,408		(374,802	)		96,376		(11,707	)		4,168,784		(386,509	)		4,380,766		(314,727	)		999,757		(267,832	)		5,380,523		(582,559	)
Redeemable preferred stock		3,548,532		(495,473	)		0		0			3,548,532		(495,473	)		278,213		(26,958	)		3,029,054		(418,340	)		3,307,267		(445,298	)
Term loans																	8,705,391		(150,865	)		-		-			8,705,391		(150,865	)
Mortgage backed and asset backed securities		4,395,703		(442,709	)		830,312		(125,959	)		5,226,015		(568,668	)		9,426,743		(412,421	)		4,205,258		(660,249	)		13,632,001		(1,072,670	)
Total fixed maturities	$	25,051,879	$	(2,740,653	)	$	3,760,662	$	(1,054,884	)	$	28,812,541	$	(3,795,537	)	$	32,006,465	$	(1,757,593	)	$	15,536,073	$	(3,179,200	)	$	47,542,538	$	(4,936,793	)

	Less than 12 months					Greater than 12 months				Total						Less than 12 months					Greater than 12 months					Total
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized				Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Loss			Value		Loss		Value		Loss				Value		Loss			Value		Loss			Value		Loss
December 31, 2021
December 31, 2022															December 31, 2022
Available for sale:
Fixed maturities:
US Treasury securities																$	398,375	$	(5,031	)	$	-	$	-		$	398,375	$	(5,031	)
Corporate bonds	$	4,496,456	$	(177,700	)	$	0	$	0	$	4,496,456	$	(177,700	)			12,378,486		(1,883,706	)		3,206,913		(1,266,676	)		15,585,399		(3,150,382	)
Municipal bonds		927,122		(14,292	)		0		0		927,122		(14,292	)			4,711,896		(587,053	)		708,514		(221,174	)		5,420,410		(808,227	)
Redeemable preferred stock		1,394,650		(21,094	)		0		0		1,394,650		(21,094	)			2,384,771		(363,193	)		970,844		(156,718	)		3,355,615		(519,911	)
Term loans																	6,309,005		(146,395	)		-		-			6,309,005		(146,395	)
Mortgage backed and asset backed securities		4,386,306		(70,259	)		0		0		4,386,306		(70,259	)			10,358,560		(458,754	)		3,281,132		(615,766	)		13,639,692		(1,074,520	)
Total fixed maturities	$	11,204,534	$	(283,345	)	$	0	$	0	$	11,204,534	$	(283,345	)		$	36,541,093	$	(3,444,132	)	$	8,167,402	$	(2,260,334	)	$	44,708,495	$	(5,704,466	)

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US Alliance Corporation

Notes to Consolidated Financial Statements (unaudited)

Unrealized losses occur from market price declines ~~that~~ ~~may~~ be due to ~~a number of factors, including economic downturns,~~ changes in interest ~~rates, competitive forces within an industry, issuer specific events, operational difficulties, lawsuits, and market pricing anomalies caused by factors such as temporary lack of liquidity.~~

rates. The total number of available for sale fixed maturity securities in the investment portfolio in an unrealized loss position as of ~~June~~March ~~30,~~31, ~~2022~~2023 was ~~196,~~230, which represented an unrealized loss of ~~$3,795,537~~$4,936,793 of the aggregate carrying value of those securities. The ~~196~~230 securities breakdown as follows: ~~118~~135 bonds, 6270 mortgage and asset backed securities, 10 term loans, and 1615 redeemable preferred stock. The total number of available for sale securities in the investment portfolio in an unrealized loss position as of December 31, ~~2021~~2022 was ~~76,~~230, which represented an unrealized loss of ~~$283,345~~$5,704,466 of the aggregate carrying value of those securities. The 76230 securities breakdown as follows: 29131 bonds, 4173 mortgage and asset backed securities, 10 term loans, and 616 redeemable preferred ~~stock.The Company determined that~~ no ~~securities were considered to be other-than-temporarily impaired as of~~ ~~June~~ ~~30,~~~~2022~~ ~~and~~ ~~December 31, 2021.~~stock.

Mortgage Loans on Real Estate

The Company has invested in various mortgage loans through participation agreements with the original issuing entity. The Company’s mortgage loans by property type as of ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 are summarized as follows:

					March 31, 2023			December 31, 2022
	June 30, 2022		December 31, 2021		(unaudited)
Commercial mortgage loans by property type	(unaudited)
Condominium	$	1,547,202	$	1,960,547	$	1,696,975		$	1,696,975
Land						1,902,277			1,902,277
Multi-property		1,179,501		1,157,950		9,870,383			9,539,738
Multi-family		336,573		534,645		5,334,609			5,016,424
Retail		1,000,000		0
Retail/Office						6,617,887			5,634,659
Total commercial mortgages	$	4,063,276	$	3,653,142	$	25,422,131		$	23,790,073
Allowance for credit losses						(137,148	)		-
Carrying value					$	25,284,983		$	23,790,073

The Company utilizes loan-to-value of individual mortgage loans to evaluate the credit quality of its mortgage loan portfolio. The loan-to-value measures the loan's carrying value to its appraised value. The Company’s mortgage loans by loan-to-value ratio as of ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 are summarized as follows:

					March 31, 2023			December 31, 2022
	June 30, 2022		December 31, 2021		(unaudited)
Loan to value ratio	(unaudited)
Over 70 to 80%					$	8,230,409		$	8,219,763
Over 60 to 70%	$	2,547,202	$	1,960,547		5,196,975			5,196,975
Over 50 to 60%						5,002,438			4,682,750
Over 40 to 50%		336,573		339,335		3,234,448			3,235,951
Over 30 to 40%		0		195,310
Over 20 to 30%						2,639,974			1,319,975
Over 10 to 20%		1,179,501		1,157,950		1,117,887			1,134,659
Total	$	4,063,276	$	3,653,142	$	25,422,131		$	23,790,073
Allowance for credit losses						(137,148	)		-
Carrying value					$	25,284,983		$	23,790,073

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US Alliance Corporation

Notes to Consolidated Financial Statements (unaudited)

The Company’s mortgage loans by maturity date as of ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 are summarized as follows:

					March 31, 2023			December 31, 2022
	June 30, 2022		December 31, 2021		(unaudited)
Maturity Date	(unaudited)
One year or less	$	1,547,202	$	2,155,857	$	18,876,776		$	15,354,542
After one year through five years		2,516,074		1,497,285		6,545,355			8,435,531
Total	$	4,063,276	$	3,653,142	$	25,422,131		$	23,790,073
Allowance for credit losses						(137,148	)		-
Carrying value					$	25,284,983		$	23,790,073

The Company evaluates its commercial mortgage loan portfolio for the establishment of a loan loss allowance by specific identification of impaired loans. A mortgage loan is impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. If the Company determines that the value of any specific mortgage loan is impaired, the carrying amount of the mortgage loan will be reduced to its fair value, based upon the present value of expected future cash flows from the loan discounted at the loan's effective interest rate, or the fair value of the underlying collateral less estimated costs to sell. The Company had 0no mortgage loans that were on non-accrued status as of ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021.~~2022. The were 0no mortgage loans delinquent on payments due the Company as of ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021.~~2022. ~~In addition,~~

The Company analyzes our commercial mortgage loan portfolio for the need of a general loan allowance for expected credit losses on all other loans on a quantitative and qualitative basis by grouping assets with similar risk characteristics when there is not a specific expectation of a loss for an individual loan. The amount of the general loan allowance is based upon management's evaluation of the collectability of the loan portfolio, historical loss experience, delinquencies, credit concentrations, underwriting standards and national and local economic conditions. The Company does not measure a credit loss allowance on accrued interest receivable as we write off any uncollectible accrued interest receivable balance to net investment income in a timely manner. The Company did not charge off any uncollectible accrued interest receivable on our commercial mortgage loan portfolio during the three-month periods ended March 31, 2023 and March 31, 2022.

The Company's commercial mortgage loans are pooled by risk rating and property collateral type and an estimated loss ratio is applied against each risk pool. The loss ratios are generally based upon historical loss experience for each risk pool and are adjusted for current and forecasted economic factors management believes to be relevant and supportable. Economic factors are forecasted for two years with immediate reversion to historical experience.

The following table presents a roll-forward of our specific and general valuation allowances for our commercial mortgage loan portfolio:

	Three Months Ended March 31, 2023
	(unaudited)
	Specific Allowance		General Allowance
Beginning allowance balance	$	-	$	-
Cumulative adjustment for changes in accounting principals		-		150,373
Charge-offs		-		-
Recoveries		-		-
Change in provision for credit losses		-		(13,225	)
Ending Allowance	$	-	$	137,148

The specific allowance represents the total credit loss allowances on loans which are individually evaluated for impairment. The general allowance is for the group of loans discussed above which are collectively evaluated for impairment.

Charge-offs include allowances that have been established on loans that were satisfied either by taking ownership of the collateral or by some other means such as discounted pay-off or loan sale. When ownership of the property is taken it is recorded at the lower of the loan's carrying value or the property's fair value (based on appraised values) less estimated costs to sell. The real estate owned is recorded as a component of other investments and the loan is recorded as fully paid, with any allowance for credit loss that has been established charged off. Fair value of the real estate is determined by third party appraisal. Recoveries are situations where the Company has received a payment from the borrower in an amount greater than the carrying value of the loan (principal outstanding less specific allowance). The Company did not ~~establish a valuation allowance on~~ own any real estate related to our mortgage ~~loans as of~~participations during the ~~June 30, 2022~~three months ended March 31, 2023 and ~~December 31, 2021.~~2022.

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US Alliance Corporation

Notes to Consolidated Financial Statements (unaudited)

Investment Income, Net of Expenses

The components of net investment income for the ~~six~~three months ended ~~June 30, 2022~~March 31, 2023 and ~~2021~~2022 are as follows:

Six Months Ended June 30,

2022

2021

(unaudited)

Fixed maturities
$ 559,262 $ 553,641
Mortgages
116,350 189,259
Equity securities
312,498 302,641
Funds withheld
1,621,509 1,649,276
Cash and cash equivalents
5,471 868
2,615,090 2,695,685
Less investment expenses
(44,403 ) (64,113 )
$ 2,570,687 $ 2,631,572

~~The components of net investment income for the~~ ~~three~~ ~~months ended~~ ~~June 30, 2022~~ ~~and~~ ~~2021~~ ~~are as follows:~~

	Three Months Ended June 30,						Three Months Ended March 31,
	2022			2021			2023			2022
	(unaudited)						(unaudited)
Fixed maturities	$	283,929		$	276,152		$	1,039,423		$	275,333
Mortgages		88,959		$	116,342			509,022			27,391
Equity securities		157,824			154,710			210,370			154,674
Funds withheld		921,201			821,279			-			700,308
Other invested assets								45,940			-
Cash and cash equivalents		5,011			560			14,021			460
		1,456,924			1,369,043			1,818,776			1,158,166
Less investment expenses		(37,859	)		(36,463	)		(313,166	)		(6,544	)
	$	1,419,065		$	1,332,580		$	1,505,610		$	1,151,622

Net Investment Gains (Losses)

Accounting standards require that the unrealized gains and losses on equity securities be reported as income on the consolidated statements of comprehensive ~~loss.~~income (loss). For the ~~six~~three months ended ~~June 30,~~March 31, 2023, net investment gains is comprised of $246,126 of unrealized gains on our equity portfolio, net realized gains including net credit losses recognized of $198,310, and a loss on the unrealized change in the fair value of our embedded derivative of $97,334. For the three months ended March 31, 2022, net investment losses is comprised of ~~$1,463,629~~$449,795 of unrealized losses on our equity portfolio, net realized ~~gains~~losses of ~~$623,~~$641 and a loss on the change in the fair value of our embedded derivative ~~on funds withheld~~ of ~~$691,300. For the~~ ~~six~~ ~~months ended~~ ~~June 30, 2021,~~ net investment gains is comprised of $103,297 of unrealized gains on our equity portfolio, net realized gains of $215,613 and a loss on the change in the fair value of our embedded derivative on funds withheld of $245,120. For the ~~three~~ ~~months ended~~ ~~June 30, 2022,~~ net investment losses is comprised of $1,013,834 of unrealized losses on our equity portfolio, net realized gains of $1,264, and a loss on the change in the fair value of our embedded derivative on funds withheld of $409,083. For the ~~three~~ ~~months ended~~ ~~June 30, 2021,~~ net investment gains is comprised of $70,378 of unrealized gains on our equity portfolio, net realized gains of $163,217 and a loss on the change in the fair value of our embedded derivative on funds withheld of $42,473.

$282,217.

Note 3.Derivative Instruments

Types of Derivatives used by the Company

The Company’s derivatives consists ~~solely~~ of embedded derivatives on funds withheld on coinsurance ~~assets.~~assets which was eliminated in October 2022 and a reinsurance contract allocated hedge which was acquired in October 2022.

~~Table of Contents~~

~~US Alliance Corporation~~

~~Notes to Consolidated Financial Statements (unaudited)~~

Summary of Derivative Positions

The fair value of the Company’s derivative financial instruments on the consolidated balance sheets is as follows:

June 30, 2022

December 31, 2021

Derivative

Derivative

Balance

Asset

Liability

Asset

Liability

Reported In
Derivatives:

(unaudited)

Embedded derivatives:

Funds withheld embedded derivative
$ 0 $ 146,532 $ 544,768 $ 0
Funds withheld

March 31, 2023

December 31, 2022

Derivative

Balance

Asset

Liability

Asset

Liability

Reported In

(Unaudited)

Derivatives:

Embedded derivatives:

Reinsurance contract allocated hedge

726,077

724,998

Reinsurance related assets

The following table shows the change in the fair value of the derivative financial instruments in the consolidated statements of comprehensive income:

Three Months Ending

Balance

Six Months Ending

Balance

March 31, 2023

March 31, 2022

Reported In

June 30, 2022

June 30, 2021

Reported In

(unaudited)

Derivatives:

(unaudited)

Embedded derivatives:

Change in funds withheld embedded derivative

(691,300

)

(245,120

)

Net investment losses

(282,217

)

Net investment gains (losses)

Change in reinsurance contract allocated hedge

1,079

Net investment gains (losses)

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US Alliance Corporation

Notes to Consolidated Financial Statements (unaudited)

Note 4.Fair Value Measurements

The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. The Company uses a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

●

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement rate.

●

Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

●

Level 3 inputs are unobservable for the asset or liability and reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

Investments, available for sale: Fair values of available for sale fixed maturity securities are provided by a third party pricing service. The pricing service uses a variety of sources to determine fair value of securities. The Company’s fixed maturity securities are highly liquid, which allows for a high percentage of the portfolio to be priced through pricing sources.

Equity securities: Fair values for equity securities are also provided by a third party pricing service and are derived from active trading on national market exchanges.

Embedded derivative: The fair value of embedded derivatives associated with funds withheld reinsurance treaty is determined upon a total return swap technique with reference to the fair value of the investments held by the ceding company that support the Company’s funds withheld asset with an adjustment for a credit valuation adjustment. The fair value of the underlying assets is generally based upon market observable inputs with industry standard valuation techniques. The valuation also requires certain significant inputs, which are generally not observable and accordingly, the valuation is considered level 3 in the fair value hierarchy. The Company’s utilization of a credit-valuation adjustment did not have a material effect on the change in fair value of the embedded derivative for the three ~~and~~ ~~six~~months ended ~~June 30, 2022~~March 31, 2023 and ~~2021.~~2022.

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US Alliance Corporation

Notes to Consolidated Financial Statements (unaudited)

The table below presents the amounts of assets and liabilities measured at fair value on a recurring basis as of ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021:~~2022:

	June 30, 2022										March 31, 2023
	Total			Level 1		Level 2		Level 3			Total		Level 1		Level 2		Level 3
	(unaudited)										(unaudited)
Fixed maturities:
US Treasury securities	$	359,309		$	0	$	359,309	$	0		$	740,816	$	740,816	$	-	$	-
Corporate bonds		17,230,707			0		17,049,107		181,600			16,348,633		-		16,172,633		176,000
Municipal bonds		5,561,188			0		5,561,188		0			5,649,804		-		5,649,804		-
Redeemable preferred stock		3,548,532			0		3,548,532		0			3,426,328		-		3,426,328		-
Term loans												18,154,908		-		-		18,154,908
Mortgage backed and asset backed securities		5,498,472			0		5,498,472		0			21,396,176		-		21,002,426		393,750
Total fixed maturities		32,198,208			0		32,016,608		181,600			65,716,665		740,816		46,251,191		18,724,658
Equities:
Common stock		6,298,209			6,204,809		93,400		0			6,129,740		6,034,240		95,500		-
Preferred stock		1,465,856			0		1,465,856		0			1,448,771		-		1,448,771		-
Total equities		7,764,065			6,204,809		1,559,256		0			7,578,511		6,034,240		1,544,271		-
Funds withheld embedded derivative		(146,532	)		0		0		(146,532	)
Other invested assets												1,985,441		-		-		1,985,441
Reinsurance contract allocated hedge												726,077		-		-		726,077
Total	$	39,815,741		$	6,204,809	$	33,575,864	$	35,068		$	76,006,694	$	6,775,056	$	47,795,462	$	21,436,176

	December 31, 2022
	Total		Level 1		Level 2		Level 3

Fixed maturities:
US Treasury securities	$	1,025,087	$	1,025,087	$	-	$	-
Corporate bonds		15,869,078		-		15,687,478		181,600
Municipal bonds		5,420,409		-		5,420,409		-
Redeemable preferred stock		3,355,615		-		3,355,615		-
Term loans		18,149,718		-		-		18,149,718
Mortgage backed and asset backed securities		21,496,170		-		21,099,920		396,250
Total fixed maturities		65,316,077		1,025,087		45,563,422		18,727,568
Equities:
Common stock		6,024,224		5,929,624		94,600		-
Preferred stock		1,370,820		-		1,370,820		-
Total equities		7,395,044		5,929,624		1,465,420		-
Other invested assets		1,760,777		-		-		1,760,777
Reinsurance contract allocated hedge		724,998		-		-		724,998
Total	$	75,196,896	$	6,954,711	$	47,028,842	$	21,213,343

December 31, 2021

Total

Level 1

Level 2

Level 3

Fixed maturities:

US Treasury securities
$ 447,765 $ 0 $ 447,765 $ 0
Corporate bonds
21,321,279 0 21,139,679 181,600
Municipal bonds
6,963,358 0 6,963,358 0
Redeemable preferred stock
3,621,526 0 3,621,526 0
Mortgage backed and asset backed securities
5,588,729 0 5,588,729 0
Total fixed maturities
37,942,657 0 37,761,057 181,600
Equities:

Common stock
7,319,584 7,226,584 93,000 0
Preferred stock
1,837,609 0 1,837,609 0
Total equities
9,157,193 7,226,584 1,930,609 0
Funds withheld embedded derivative
544,768 0 0 544,768
Total
$ 47,644,618 $ 7,226,584 $ 39,691,666 $ 726,368

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US Alliance Corporation

Notes to Consolidated Financial Statements (unaudited)

The reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are as follows:

For the Six Months Ended June 30, 2022

Corporate

Funds

Bonds

Withheld

Fair value, beginning of period
$ 181,600 $ 544,768
Investment related losses
0 (691,300 )
Fair value, end of period
$ 181,600 $ (146,532 )

~~Table of Contents~~

~~US Alliance Corporation~~

~~Notes to Consolidated Financial Statements (unaudited)~~

For the Three Months Ended June 30, 2022

Corporate

Funds

Bonds

Withheld

Fair value, beginning of period
$ 181,600 $ 262,551
Investment related gains (losses), net
0 (409,083 )
Fair value, end of period
$ 181,600 $ (146,532 )

				Mortgage
For the Three Months Ended March 31, 2023	Corporate			Backed			Term			Hedge
(unaudited)	Bonds			Securities			Loans			Derivative
Fair value, beginning of period	$	181,600		$	396,250		$	18,149,718		$	724,998
Principal payment		(5,600	)		(2,500	)		(135,042	)
Acquisition		-			-			109,837			-
Investment related gains		-			-			30,395			1,079
Fair value, end of period	$	176,000		$	393,750		$	18,154,908		$	726,077

The Company discloses the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. The methodologies for other financial assets and financial liabilities are discussed below:

Cash and cash equivalents: The carrying amounts approximate fair value because of the short maturity of these instruments.

Investment income due and accrued: The carrying amounts approximate fair value because of the short maturity of these instruments.

Mortgage loans on real estate: Mortgage loans are carried at their unpaid principal value as that is considered the fair market values for these ~~loans.~~loans less an allowance for credit losses.

~~Funds withheld~~Reinsurance contract allocated hedge: The carrying value of funds withheld at interest approximates fair value as funds are specifically identified in the agreement. The fair value of the specified funds is based on the fair value of the underlying assets that are held by the ceding company. The ceding company uses a variety of sources and pricing methodologies, which are not transparent to the Company and may include significant unobservable inputs to value the securities held in distinct portfolios, therefore the valuation of these funds withheld assets are considered Level 3 in the fair value hierarchy.

Policy loans: Policy loans are stated at unpaid principal balances. As these loans are fully collateralized by the cash surrender value of the underlying insurance policies, the carrying value of the policy loans approximates their fair value.

Federal Home Loan Bank Advances: FHLB advances are stated at the outstanding principal balances and the carrying value approximates fair value.

Policyholder deposits in deposit-type contracts: The fair value for policyholder deposits deposit-type insurance contracts (accumulation annuities) is calculated using a discounted cash flow approach. Cash flows are projected using actuarial assumptions and discounted to the valuation date using risk-free rates adjusted for credit risk and the nonperformance risk of the liabilities.

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~~tents~~

US Alliance Corporation

The estimated fair values of the Company’s financial assets and liabilities at ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 are as follows:

~~NaN~~No income tax expense or (benefit) has been reflected for the ~~six~~ ~~and~~ three months ended ~~June~~March ~~30,~~31, ~~2022~~2023 and ~~2021~~2022 due to ~~the lack of taxable net income generated by the Company~~loss carryforwards and a change in the valuation allowance pertaining to the deferred tax asset.

The net operating loss carryforwards for the Company are ~~$9,198,976~~$9,630,952 as of December 31, ~~2021~~2022 and estimated to be $9,500,000 as of ~~June~~March ~~30,~~31, ~~2022.~~2023. The components of the deferred tax assets and liabilities due to book and tax differences are the following: fixed asset depreciation, net operating loss carryforward, net unrealized gains (losses) on investment securities, policyowner benefit reserves and deferred acquisition costs. The deferred tax asset net of valuation allowance is ~~$1,560,767~~$3,294,522 as of both ~~June~~March ~~30,~~31, ~~2022~~2023 and December 31, ~~2021.~~2022.

All of the effects of subsequent events that provide additional evidence about conditions that existed at the balance sheet date, including the estimates inherent in the process of preparing the consolidated financial statements, are recognized in the consolidated financial statements. The Company does not recognize subsequent events that provide evidence about conditions that did not exist at the balance sheet date but arose after, but before the consolidated financial statements are issued. In some cases, unrecognized subsequent events are disclosed to keep the consolidated financial statements from being misleading.

The Company has evaluated subsequent events through ~~August 11, 2022,~~May 15, 2023, the date on which the consolidated financial statements were issued.

ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with our consolidated financial statements and notes thereto included in this Form 10-Q. In connection with, and because we desire to take advantage of, the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, we caution readers regarding certain forward looking statements in the following discussion and elsewhere in this report and in any other statement made by, or on our behalf, whether or not in future filings with the Securities and Exchange Commission. Forward looking statements are statements not based on historical information and which relate to future operations, strategies, financial results or other developments. Forward looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies, including those relating to the COVID-19 pandemic, and many of which are beyond our control and many of which, with respect to future business decisions, are subject to change. These uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed in any forward looking statements made by, or on our behalf. We disclaim any obligation to update forward looking statements.

USAC was formed as a Kansas corporation on April 24, 2009 for the purpose of raising capital to form a new Kansas-based life insurance company. We presently conduct our business through our five wholly-owned subsidiaries: USALSC, a life insurance corporation; DCLIC, a life insurance corporation; USALSC-Montana, a life insurance corporation; USAMC, an insurance marketing corporation; and USAIC, an investment management ~~corporation. Unless the context indicates otherwise, references herein to the "Company" refer to USAC and its consolidated subsidiaries.~~corporation

On January 2, 2012, USALSC was issued a Certificate of Authority to conduct life insurance business in the State of Kansas. We began third party administrative services in 2015.

On August 1, 2017, the Company merged with Northern Plains Capital Corporation with the Company being the ultimate surviving entity. As a result of this merger, the Company acquired Dakota Capital Life Insurance Company which became a wholly owned subsidiary of USALSC.

On December 14, 2018, the Company acquired Great Western Life Insurance Company. Great Western Life Insurance Company was renamed US Alliance Life and Security Company – Montana and is a subsidiary of USALSC.

The Company assumes business under three reinsurance treaties. On January 1, 2013, the Company entered into an agreement to assume 20% of a certain block of health insurance policies from Unified Life Insurance Company. On September 30, 2017, ~~USALSC~~the Company entered into anand agreement (the "2017 ALSC Agreement"~~) with American Life & Security Company ("ALSC"~~) to assume 100% of a certain block of life insurance policies from ~~ALSC.~~American Life & Security Company ("ALSC"). On April 15, 2020, with an effective date of January 1, 2020, ~~USALSC~~the Company entered into an agreement with ALSC (the "2020 ALSC Agreement") ~~with ALSC~~ to assume a quota share percentage of a block of annuity policies. As of December 31, ~~2020, USALSC~~2022, the Company had assumed ~~$50.1~~$52.3 million in annuity deposits under the 2020 ALSC Agreement. Effective December 31, 2020 ~~DCIC~~USALSC entered into an agreement ~~(teh ("ALSC 2020 Assumption Agreement")~~ with ALSC, which provided for ALSC to recapture all reserves previously ceded to USALSC with respect to a portion of the 2017 ALSC Agreement. USALSC and ALSC agreed that the commuted business shall be discharged by USALSC’s transfer of invested assets and cash in the amount of $9,181,100. As part of the transaction the Company released $10,972,785 in reserve liabilities and $1,146,156 of deferred acquisition costs, resulting in a commutation gain of $543,794, which was recorded in other income for the year ended December 31, 2020.

Our accounting and reporting policies are in accordance with GAAP. Preparation of the consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. The following is an explanation of our accounting policies and the estimates considered most significant by management. These accounting policies inherently require significant judgment and assumptions and actual operating results could differ significantly from management’s estimates determined using these policies. We believe the following accounting policies, judgments and estimates are the most critical to the understanding of our results of operations and financial position. A detailed discussion of significant accounting policies is provided in this report in the Notes to Consolidated Financial Statements included with this ~~quarterly~~annual report.

2021

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The Company's principal investments are in fixed maturity, mortgages, and equity securities. Fixed maturity, ~~securities,~~ classified as available for sale, are carried at their fair value in the consolidated balance sheets, with unrealized gains or losses recorded in comprehensive ~~income.~~income (loss). Our fixed income investment manager utilizes external independent third-party pricing services to determine the fair values of investment securities available for sale. Equity securities are carried at their fair value in the consolidated balance sheets, with unrealized gains or losses recorded in net income (loss).

We have a policy and process in place to identify securities that could potentially have an impairment that is other-than-temporary. The assessment of whether impairments have occurred is based on a case-by-case evaluation of underlying reasons for the decline in fair value. We consider severity of impairment, duration of impairment, forecasted recovery period, industry outlook, financial condition of the issuer, issuer credit ratings and whether we intend to sell a security, or it is more likely than not that we would be required to sell a security, prior to the recovery of the amortized cost. New England Asset Management ("NEAM") and 1505 Capital, our investment managers, provide support to the Company in making these determinations.

The recognition of ~~other-than-temporary impairment~~credit losses on debt securities is dependent on the facts and circumstances related to the specific security. If we ~~intend to sell~~determine a ~~security or it is more likely than not that we would be required to sell a security prior to recovery of the amortized cost,~~credit loss exists, the difference between amortized cost and fair value is recognized in the income ~~statement as an other-than-temporary impairment.~~statement. Our membership in the Federal Home Loan Bank ~~("FHLB"~~(“FHLB”) provides additional liquidity which further reduces the likelihood that we would be required to sell a security prior to recovery. As it relates to debt securities, if we do not expect to recover the amortized basis, do not plan to sell the security and if it is not more likely than not that we would be required to sell a security before the recovery of its amortized cost, the other-than-temporary impairment would be recognized. We would recognize the credit loss portion through earnings in the income statement and the noncredit loss portion in accumulated other comprehensive loss.

Incremental direct costs, net of amounts ceded to reinsurers, that result directly from and are essential to a product sale and would not have been incurred by us had the sale not occurred, are capitalized, to the extent recoverable, and amortized over the life of the premiums produced. Recoverability of deferred acquisition costs is evaluated periodically by comparing the current estimate of the present value of expected pretax future profits to the unamortized asset balance. If this current estimate is less than the existing balance, the difference is charged to expense.

Value of business acquired ~~("VOBA"~~(“VOBA”) represents the estimated value assigned to purchased companies or insurance in- force of the assumed policy obligations at the date of acquisition of a block of policies. At least annually, a review is performed of the models and the assumptions used to develop expected future profits, based upon management’s current view of future events. VOBA is reviewed on an ongoing basis to determine that the unamortized portion does not exceed the expected recoverable amounts. Management’s view primarily reflects our experience but can also reflect emerging trends within the industry. Short-term deviations in experience affect the amortization of VOBA in the period, but do not necessarily indicate that a change to the long-term assumptions of future experience is warranted. If it is determined that it is appropriate to change the assumptions related to future experience, then an unlocking adjustment is recognized for the block of business being evaluated. Certain assumptions, such as interest spreads and surrender rates, may be interrelated. As such, unlocking adjustments often reflect revisions to multiple assumptions. The VOBA balance is immediately impacted by any assumption changes, with the change reflected through the statements of comprehensive ~~loss~~income as an unlocking adjustment in the amount of VOBA amortized. These adjustments can be positive or negative with adjustments reducing amortization limited to amounts previously deferred plus interest accrued through the date of the adjustment.

~~Table of Contents~~

In addition, we may consider refinements in estimates due to improved capabilities resulting from administrative or actuarial system upgrades. We consider such enhancements to determine whether and to what extent they are associated with prior periods or simply improvements in the projection of future expected gross profits due to improved functionality. To the extent they represent such improvements, these items are applied to the appropriate financial statement line items in a manner similar to unlocking adjustments.

Table of Contents

VOBA is also reviewed on an ongoing basis to determine that the unamortized portion does not exceed the expected recoverable amounts. If it is determined from emerging experience that the premium margins or gross profits are less than the unamortized value of business acquired, then the asset will be adjusted downward with the adjustment recorded as an expense in the current period.

Goodwill represents the excess of the amounts paid to acquire subsidiaries and other businesses over the fair value of their net assets at the date of acquisition. Goodwill is tested for impairment at least annually in the fourth quarter or more frequently if events or circumstances change that would indicate that a triggering event has occurred.

We assess the recoverability of indefinite-lived intangible assets at least annually or whenever events or circumstances suggest that the carrying value of an identifiable indefinite-lived intangible asset may exceed the sum of the future discounted cash flows expected to result from its use and eventual disposition. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset.

In the normal course of business, we seek to limit aggregate and single exposure to losses on risk by purchasing reinsurance. The amounts reported in the consolidated balance sheets as reinsurance recoverable include amounts billed to reinsurers on losses paid as well as estimates of amounts expected to be recovered from reinsurers on insurance liabilities that have not yet been paid. Reinsurance recoverable on unpaid losses are estimated based upon assumptions consistent with those used in establishing the liabilities related to the underlying reinsured contracts. Insurance liabilities are reported gross of reinsurance recoverable. Management believes the recoverables are appropriately established. We diversify our credit risks related to reinsurance ceded. Reinsurance premiums are generally reflected in income in a manner consistent with the recognition of premiums on the reinsured contracts. Reinsurance does not extinguish our primary liability under the policies written. We regularly evaluate the financial condition of our reinsurers including their activities with respect to claim settlement practices and commutations, and establish allowances for uncollectible reinsurance recoverable as appropriate.

We establish liabilities for amounts payable under insurance policies, including traditional life insurance and annuities. Generally, amounts are payable over an extended period of time. Liabilities for future policy benefits of traditional life insurance have been computed by using a net level premium method based upon estimates at the time of issue for investment yields, mortality and withdrawals. These estimates include provisions for experience less favorable than initially expected. Mortality assumptions are based on industry experience expressed as a percentage of standard mortality tables. Such liabilities are reviewed quarterly by an independent consulting actuary.

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Deferred tax assets are recorded based on the differences between the financial statement and tax basis of assets and liabilities at the enacted tax rates. The principal assets and liabilities giving rise to such differences are investments, insurance reserves, and deferred acquisition costs. A deferred tax asset valuation allowance is established when there is uncertainty that such assets would be realized. We have no uncertain tax positions we believe are more-likely-than-not that the benefit will not to be realized.

Revenues on traditional life insurance products consist of direct and assumed premiums reported as earned when due.

Amounts received as payment for annuities are recognized as deposits to policyholder account balances and included in future insurance policy benefits. Revenues from these contracts are comprised of investment earnings of the deposits, which are recognized over the period of the contracts, and included in revenue. Deposits are shown as a financing activity in the Consolidated Statements of Cash Flows.

The Company has entered into coinsurance funds withheld arrangement with ALSC which contains an embedded derivative. Under ASC 815, the Company assesses whether the embedded derivative is clearly and closely related to the host contract. The Company bifurcates embedded derivatives from the host instrument for measurement purposes when the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and a separate instrument with the same terms would qualify as a derivative instrument. ~~Embedded~~The Company has two different embedded derivatives, the first of which ~~are~~existed prior to the transfer of the funds withheld account, which is reported ~~with the host instrument~~ on the consolidated balance sheets in funds withheld under coinsurance agreement, ~~are reported at fair value~~ with changes in fair value recognized in the consolidated statements of comprehensive ~~loss~~income (loss) in net investment ~~losses.~~gains (losses). The second embedded derivative recognized after the funds withheld transfer is reported within reinsurance related assets on the balance sheet and within net investment gains (losses) on the statement of comprehensive income (loss).

Funds withheld under coinsurance agreement represent amounts contractually withheld by a ceding company in accordance with the 2020 ALSC Agreement. For agreements written on a coinsurance funds withheld basis, assets that support the net statutory reserves or as defined by the treaty, are withheld and legally owned by the ceding company. Interest is recorded in net investment income, net of related expenses, in the consolidated statements of comprehensive ~~loss.~~income (loss). Funds withheld under coinsurance agreement are presented net of the embedded derivative, discussed above. Under the terms of the 2020 ALSC Agreement the Company may assume custody of the assets in the funds withheld account once the Company ~~attains its~~qualifies as an "Qualified Institutional Buyer" ~~designation~~ (as that term is defined in Rule 144A under the Securities Act of 1933, as amended)~~, which will occur~~ and we satisfied the qualifications for this designation beginning in the ~~third~~fourth quarter of 2022. The Company ~~will record~~recorded the funds withheld assets at fair value on the date of transfer, which ~~will eliminate~~eliminated the embedded derivative component associated with the ~~2020~~unrealized gains and losses within the funds withheld account.

Additionally, after the transfer of the funds withheld assets, ALSC ~~Agreement.~~continued to manage currency risk within the coinsured liability portfolio using derivative instruments. In accordance with the coinsurance agreement, ALSC allocates a proportion of the derivative activity it manages to the Company, which is settled quarterly as part of the reinsurance settlement. As the derivative allocation is not clearly and closely related to the host contract, the Company recognizes an embedded derivative equal to the fair value of the derivative allocation.

Mortgage loans on real estate, including mortgage loan participations, are carried at unpaid principal balances, net of any unamortized premium or discount and valuation allowances. Interest income is accrued on the principal amount of the mortgage loans based on its contractual interest rate. Amortization of premiums and discounts is recorded using the effective yield method. The Company accrues interest on loans until probable ~~that~~ the Company will not receive interest or the loan is 90 days past due. Interest income, amortization of premiums, accretion of discounts and prepayment fees are reported in investment income, net of related expenses in the consolidated statements of comprehensive income (loss).

A mortgage loan is considered to be impaired when, based on the current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the mortgage agreement.

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Valuation allowances on mortgage loans are established based upon inherent losses expected by management to be realized in connection with future dispositions or settlement of mortgage loans, including foreclosures. The Company establishes valuation allowances for estimated impairments on an individual loan basis as of the balance sheet date. Such valuation allowances are based on the excess carrying value of the loan over the present value of expected future cash flows discounted at the loan’s original effective interest rate, the value of the loan’s collateral if the loan is in the process of foreclosure or is otherwise collateral-dependent, or the loan’s market value if the loan is being sold. These evaluations are revised as conditions change and new information becomes available. In addition to historical experience, management considers qualitative factors that include the impact of changing macro-economic conditions, which may not be currently reflected in the loan portfolio performance, and the quality of the loan portfolio.

Any interest accrued or received on the net carrying amount of the impaired loan will be included in investment income or applied to the principal of the loan, depending on the assessment of the ~~collectability~~collectibility of the loan. Mortgage loans deemed to be uncollectible or that have been foreclosed are charged off against the valuation allowances and subsequent recoveries, if any, are credited to the valuation allowances. Changes in valuation allowances are reported in net investment gains (losses) on the consolidated statements of comprehensive income (loss).

Other invested assets include collateral loans and private credit investments. The ~~Company evaluates whether a mortgage loan modification represents a troubled debt restructuring. In a troubled debt restructuring,~~collateral loans and private credit investments are carried at fair value. The inputs used to measure these assets are classified as Level 3 within the Company grants concessions related to the borrower’s financial difficulties. Generally, the types of concessions include: reduction of the contractual interest rate, extension of the maturity date at an interest rate lower than current market interest rates and/or a reduction of accrued interest. The Company considers the amount, timing and extent of the concession granted in determining any impairment or changes in the specific valuation allowance recorded in connection with the troubled debt restructuring. Through the continuous monitoring process, the Company may have recorded a specific valuation allowance prior to when the mortgage loan is modified in a troubled debt restructuring. Accordingly, the carryingfair value (after specific valuation allowance) before and after modification through a troubled debt restructuring may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment.hierarchy.

On May 23, 2017 the Company entered into a definitive merger agreement with Northern Plains Capital Corporation. The merger transaction closed on ~~July 31,~~August 1, 2017. NPCC shareholders received .5841 shares of US Alliance Corporation stock for each share of NPCC stock owned. USAC issued 1,644,458 shares of common stock to holders of NPCC shares.

On October 11, 2018 the Company entered into a stock purchase agreement with Great Western Insurance Company to acquire Great Western Life Insurance Company. The transaction closed on December 14, 2018. USALSC paid $500,000 to acquire all of the outstanding shares of GWLIC.

Effective December 31, 2020, DCLIC acquired a block of life insurance policies according to the terms of ~~the 2020 ALSC Assumption Agreement.~~an assumption agreement with ALSC. The Company acquired fixed maturity securities and cash of $9,181,100, assumed liabilities of $10,972,785 and recorded VOBA of ~~$2,163,542.~~$2,163,541.

A detailed discussion of new accounting standards is provided in the Notes to Consolidated Financial Statements beginning on p. 98 of this quarterly report.

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Total Income. Insurance revenues are primarily generated from premium revenues and investment income. Total income for the ~~six~~three months ended ~~June 30,~~March 31, 2023 and 2022 ~~and 2021 is~~are summarized in the table below.

Our first quarter 2023 total income increased to $5,277,825, an increase of $1,417,035 or 37% from the 2022 first ~~six months total income decreased to $7,302,775, a decrease of $1,912,087 or 21% from the 2021 first six months~~quarter total income of ~~$9,214,862.~~$3,860,790. The increase is driven by increased net investment income and net investment gains. The Company was required to implement a new accounting standard in 2019 which results in unrealized gains and losses on equity securities being included in total income. This standard continues to result in increased volatility in total income and is ~~the~~a driver of ~~the reduced~~ first ~~six months~~quarter increased total income.

~~Total income for the three months ended June 30, 2022 and 2021 is summarized in the table below.~~

~~Our 2022 second quarter total income decreased to $3,441,985 from $4,906,597, a decrease of $1,464,612 or 30%. The decrease is driven by net investment losses recognized during the period.~~

Premium income:Premium income for the first ~~six months~~quarter of ~~2022~~2023 was ~~$6,726,209~~$3,341,325 compared to ~~$6,352,098~~$3,362,256 for the same period in ~~the first six months~~2022, a decrease of ~~2021, an increase of $374,111~~$20,931 or 6%1%. The ~~increase~~decrease was driven by an increase in ~~direct single and recurring~~ceded premiums. ~~Although~~Even though it is a reduction in revenue, ceded premium increases reflect the growth of our group policy premiums as we ~~focus~~focused on small companies to assist them with their employee benefits.

Direct, assumed and ceded premiums for the ~~six~~three months ended ~~June 30,~~March 31, 2023 and 2022 ~~and 2021~~ are summarized in the following table.

The Company continuously searches for new product and distribution opportunities to continue to increase premium production on both a direct and assumed basis.

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Premium income for the second quarter of 2022 was $3,363,953 compared to $3,304,921 in the second quarter of 2021, an increase of $59,032 or 2%. The increase was driven by an increase in direct single and recurring premiums. Though it is a reduction in revenue, ceded premium increases reflect the growth of our group policy premiums as we focus on small companies to assist them with their employee benefits.

~~Direct, assumed and ceded premiums for the three months ended June 30, 2022 and 2021 are summarized in the following table.~~

Investment income, net of expenses: The components of net investment income for the ~~six~~three months ended ~~June 30,~~March 31, 2023 and 2022 ~~and 2021~~ are as follows:

Net investment income for the first ~~six~~three months of ~~2022~~2023 was ~~$2,570,687,~~$1,505,610, compared to ~~$2,631,572 in 2021, a decrease of $60,885 or 2%. This decrease in investment income is primarily a result of decreased mortgage income .~~

~~The components of net investment income~~$1,151,622 for the ~~three months ended June 30,~~same period in 2022, ~~and 2021 are as follows:~~

~~Net investment income for the second quarter of 2022 was $1,419,065, compared to $1,332,580 in 2021,~~ an increase of ~~$86,485~~$353,988 or 6%31%. The increase is driven by an increase in net yields.

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Net ~~investments~~investment gains (losses): Net investment ~~losses~~gains for the ~~six~~first three months ~~ended June 30, 2022~~of 2023 were ~~$2,154,307,~~$347,102, compared to ~~gains~~losses of ~~$73,790~~$732,653 for the same period ~~in 2021,~~2022, an increase of ~~$2,228,097.~~$1,079,755. The ~~increase in~~ net investment ~~losses is~~gains are attributable to increases in the value of our equity securities and net realized gains. Net investment gains for 2023 were comprised of $246,126 of unrealized gains in our equity portfolio, $97,334 of unrealized losses on ~~our equity portfolio~~derivative assets, and ~~funds withheld account.~~realized gains of $198,310. Net investment losses for the ~~six~~first three months ~~ended June 30,~~of 2022 were comprised of ~~$2,154,930~~$449,795 of unrealized losses in our equity portfolio, ~~and~~$282,217 of unrealized losses on our funds withheld asset, and realized ~~gains~~losses of $623. Net investment gains for the six months ended June 30, 2021 were comprised of $141,823 of unrealized losses in our equity portfolio and funds withheld asset and realized gains of $215,613. Realized gains and losses related to the sale of securities for the six months ended June 30, 2022 and 2021 are summarized as follows:

Net investment losses for the three months ended June 30, 2022 were $1,421,654, compared to gains of $191,122 for the same period in 2021, an increase of $1,612,776. The increase in net investment losses is attributable to unrealized losses on our equity portfolio and funds withheld account. Net investment losses for the three months ended June 30, 2022 were comprised of $1,422,918 of unrealized losses in our equity portfolio and funds withheld asset and realized gains of $1,264. Net investment gains for the three months ended June 30, 2021 were comprised of $27,906 of unrealized gains in our equity portfolio and funds withheld asset and realized gains of $163,217.$641. Realized gains and losses related to the sale of securities for the three months ended ~~June 30,~~March 31, 2023 and 2022 ~~and 2021~~ are summarized as follows:

Other income:~~Other income for the six months ended June 30, 2022 was $160,186 compared to $157,402 in the same period in 2021, an increase of $2,784.~~ Other income for the three months ended ~~June 30, 2022~~March 31, 2023 was ~~$80,621~~$83,788 compared to ~~$77,974~~$79,565 in ~~the same period in 2021,~~2022, an increase of ~~$2,647.~~

~~Expenses. Expenses for the six months ended June 30, 2022 and 2021 are summarized in the table below.~~

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Expenses. Expenses for the three months ended ~~June 30,~~March 31, 2023 and 2022 ~~and 2021~~ are summarized in the table below.

Death claims: Death benefits were $1,525,175 in the six months ended June 30, 2022 compared to $1,101,796 for 2021, an increase of $423,379 or 38%. This increase is attributable to our growing block of in-force pre-need life insurance policies and to increased group life claims. We expect these claims to grow as we continue to increase the size of our in-force business. The COVID-19 pandemic has increased mortality rates for the entire United States population.

~~Death benefits were $727,887~~$941,702 in the three months ended ~~June 30, 2022~~March 31, 2023 compared to ~~$530,632~~$797,288 for ~~2021,~~the same period in 2022, an increase of ~~$197,255~~$144,414 or ~~37%~~18%. This increase is attributable to our growing block of in-force pre-need life insurance policies and to increased group life claims. We expect these claims to grow as we continue to increase the size of our in-force business. The COVID-19 pandemic has increased mortality rates for the entire United States population.

Policyholder benefits: Policyholder benefits were ~~$3,613,384~~$1,564,035 in the ~~six~~three months ended ~~June 30, 2022~~March 31, 2023 compared to ~~$3,448,788 in~~$1,659,985 for the same period in ~~2021, an increase~~2022, a decrease of ~~$164,596~~$95,950 or 5%6%. The primary driver of this ~~increase~~decrease is a reduction of assumed benefits and increased surrender ~~benefit payments.~~

Policyholder benefits were $1,953,399 in the three months ended June 30, 2022 compared to $1,745,769 in the same period in 2021, an increase of $207,630 or 12%. The primary driver of this increase is increased surrender benefit payments.change income.

Increase in policyholder reserves: ~~The increase in policyholder~~Policyholder reserves ~~decreased to $2,143,630 in the six months ended June 30, 2022, compared to $2,332,241 in 2021, a decrease of $188,611 or 8%. The growth in reserves was offset~~increased by ~~increased pre-need claims which reduce reserves.~~

~~The increase in policyholder reserves decreased to $947,280~~$1,047,878 in the three months ended ~~June 30, 2022,~~March 31, 2023, compared to ~~$1,145,738~~$1,659,985 for the same period in ~~2021,~~2022, a decrease of ~~$198,458~~$148,472 or ~~17%~~12%. The reduced growth in reserves ~~was offset by~~is the result of increased pre-need ~~claims which reduce reserves.~~claims.

Commissions, net of deferrals: The Company pays commissions to the ceding company on a block of assumed policies as well as commissions to agents on directly written business. Commissions, net of deferrals, were ~~$392,215 in the six months ended June 30, 2022, compared to $373,461 in 2021, an increase of $18,754 or 5%. This increase is due to an increase in premiums.~~

~~The Company pays commissions to the ceding company on a block of assumed policies as well as commissions to agents on directly written business. Commissions, net of deferrals, were $201,881~~$171,731 in the three months ended ~~June 30, 2022,~~March 31, 2023, compared to ~~$194,253~~$190,334 for the same period in ~~2021, an increase~~2022, a decrease of ~~$7,628 or 4%.~~$18,603. This ~~increase~~decrease is due to ~~an increase~~a reduction in commissions on assumed premiums.

Amortization of deferred acquisition costs: The amortization of deferred acquisition costs ("DAC") was ~~$581,904~~$367,122 in the ~~six~~three months ended ~~June 30, 2022,~~March 31, 2023, compared to ~~$554,865~~$275,698 for the same period in ~~2021,~~2022, an increase of ~~$27,039 or 5%.~~$91,424. The increase is driven by ~~the normal~~adjustments to DAC amortization ~~pattern of our deferred acquisition cost asset.~~resulting from increased annuity surrenders.

The amortization of DAC was $306,206 in the three months ended June 30, 2022, compared to $284,808 in 2021, an increase of $21,398 or 8%. The increase is driven by the normal amortization pattern of our deferred acquisition cost asset.

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Amortization of value of business acquired: The amortization of ~~VOBA~~value of business acquired (“VOBA”) was ~~$46,210~~$23,105 in the ~~six~~three months ended ~~June 30,~~March 31, 2023 and 2022, ~~and 2021. In 2021, we began to amortize VOBA associated with DCLIC’s acquisition of policies from ALSC.~~respectively. VOBA is being amortized straight-line over 30 years.

~~The amortization of VOBA was $23,105 in the three months ended June 30, 2022 and 2021.~~

Salaries and benefits: Salaries and benefits were $684,320 for the six months ended June 30, 2022, compared to $538,195 in 2021, an increase of $146,125 or 27%. The increase was driven by increased employee compensation costs and additional team members.

~~Salaries and benefits were $360,261~~$363,288 for the three months ended ~~June 30, 2022,~~March 31, 2023, compared to ~~$282,167~~$324,059 for the same period in ~~2021,~~2022, an increase of ~~$78,094~~$39,229 or ~~28%~~12%. The increase was driven by increased employee compensation costs and additional team members.

Other operating expenses:Other operating expenses were ~~$1,038,613 in the six months ended June 30, 2022, compared to $940,820 in 2021, an increase of $97,793 or 10%. The increase was driven by increased premium tax and information technology expenses.~~

~~Other operating expenses were $497,211~~$523,513 in the three months ended ~~June 30, 2022,~~March 31, 2023, compared to ~~$485,422~~$541,402 for the same period in ~~2021,~~2022, a decrease of $17,889 or 3%. The decrease is driven by decreased marketing and building expense partially offset by increased actuarial and audit expenses.

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Net Income (loss): Our net income was $275,451 in the three months ended March 31, 2023 compared to net loss of $1,147,431 for the same period in 2022, an increase of ~~$11,789 or 2%. The increase was driven by increased information technology expenses.~~

~~Net loss:~~ $1,422,882. Our net ~~loss was $2,722,676 in the six months ended June 30, 2022 compared to a net loss of $121,514 in 2021, an increase of $2,601,162 or 2041%. Our net loss~~income per share was ~~$0.35~~$0.04 compared to a net loss per share of ~~$0.02~~$0.15 in ~~2021, basic and diluted. Of the Company's $0.35 loss per share in the first six months of~~ 2022, $0.28 was attributable to unrealized losses on our equity portfolio and funds withheld asset. Our net loss was $1,575,245 in the three months ended June 30, 2022 compared to net income of $214,703 in 2021, an increase of $1,789,948. Our net loss per share was $0.20 compared to a net income per share of $0.03 in 2021, basic and diluted.

Assets. Assets have ~~decreased~~increased to ~~$116,931,820~~$120,575,681 as of ~~June 30, 2022, a decrease~~March 31, 2023, an increase of ~~$4,553,014~~$2,277,384 or 4%2% from December 31, ~~2021.~~2022 assets of $118,298,297. This is primarily the result of ~~a decrease of $6,376,810~~premium income and an increase in the market value of our fixed maturity securities.

Available for sale fixed maturity securities: As of ~~June 30, 2022,~~March 31, 2023, we had available for sale fixed maturity assets of ~~$32,198,208, a decrease~~$65,716,665, an increase of ~~$5,744,449~~$400,588 or ~~15%~~1% from the December 31, ~~2021~~2022 balance of ~~$37,942,657.~~$65,316,077. The ~~decrease~~increase is driven by ~~a decrease of $6,376,810~~an increase in the market value of these securities. ~~Assuming~~If we hold our fixed maturity securities to maturity ~~as we intend to do,~~ any ~~changes~~change in market value is temporary. ~~Compliance with GAAP accounting rules requires that these temporary changes be reflected in our asset values and shareholders equity.~~

Equity securities, at fair value: As of ~~June 30, 2022,~~March 31, 2023, we had ~~available for sale~~ equity assets of ~~$7,764,065, a decrease~~$7,578,511, an increase of ~~$1,393,128~~$183,467 or ~~15%~~3% from the December 31, ~~2021~~2022 balance of ~~$9,157,193.~~$7,395,044. This ~~decrease~~increase is ~~the result of a decline of $1,463,629~~driven by an increase in the ~~fair value of these securities. Changes in the fair~~market value of our equity ~~securities are reflected in our asset values and in net income.~~securities.

Mortgage loans on real estate: As of ~~June 30, 2022,~~March 31, 2023, we had mortgage loans on real estate of ~~$4,063,276~~$25,284,983, an increase of ~~$410,134~~$1,494,910 or ~~11%~~6% from the December 31, ~~2021~~2022 balance of ~~$3,653,142.~~$23,790,073. The increase is the result of ~~the acquisition of new~~acquiring additional mortgage loan participations.

~~Funds withheld under coinsurance agreement, at fair value~~Other invested assets:: As of ~~June 30, 2022,~~March 31, 2023, we had ~~funds withheld~~other invested assets of ~~$49,681,473,~~$1,985,441, an increase of ~~$662,499~~$224,664 or 1%12% from the December 31, ~~2021~~2022 balance of ~~$49,018,974.~~$1,760,777. The ~~growth represents investment returns in~~increase is the ~~funds withheld account.~~result of acquisitions of additional assets.

Policy loans: As of ~~June 30, 2022,~~March 31, 2023, our policy loans were ~~$49,645, a decrease~~$35,747, an increase of ~~$123,696~~$767 or ~~71%~~2% from the December 31, ~~2021~~2022 balance of ~~$173,341.~~$34,980. The ~~decrease~~increase is a result of ~~automatic premium loans being repaid.~~ normal policy loan activity.

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Real estate, net of depreciation: As of ~~June 30, 2022,~~March 31, 2023, we had real estate assets of ~~$1,388,427~~$1,366,360 related to the purchase of our home office building, a decrease of ~~$14,710~~$7,356 from the December 31, ~~2021~~2022 balance of ~~$1,403,137.~~$1,373,716. The decrease is the result of depreciation.

Cash and cash equivalents: As of ~~June 30, 2022,~~March 31, 2023, we had cash and cash equivalent assets of ~~$9,472,845, an increase~~$4,044,010, a decrease of ~~$1,517,497~~$47,497 or ~~19%~~1% from the December 31, ~~2021~~2022 balance of ~~$7,955,348.~~$4,091,507. This ~~increase~~decrease was the result of cash being ~~prepared for deployment~~deployed into invested assets.

Investment income due and accrued: As of ~~June 30, 2022,~~March 31, 2023, our investment income due and accrued was ~~$567,974~~$2,189,269 compared to ~~$698,504~~$2,086,365 as of December 31, ~~2021, a decrease~~2022, an increase of ~~$130,530~~$102,904 or ~~19%~~5%. This ~~decrease~~increase is attributable to investment activity.

Reinsurance related assets: As of ~~June 30, 2022, we had no~~March 31, 2023, our reinsurance related assets were $290,777 compared to ~~$3,438~~$125,549 as of December 31, ~~2021.~~2022, an increase of $165,228. This ~~decrease~~increase is the result of ~~amounts~~changes in the net settlement due ~~to and~~ from ~~ALSC under our 2020 ALSC agreement.~~reinsurers.

Deferred acquisition costs, net: As of ~~June 30, 2022,~~March 31, 2023, our deferred acquisition costs were ~~$6,002,490~~$5,393,700 compared to ~~$6,354,875~~$5,629,002 as of December 31, ~~2021,~~2022, a decrease of ~~$352,385~~$235,302 or 6%4%. The decrease is the result of the amortization of DAC related to our 2020 ALSC ~~agreement.~~Agreement.

Value of business acquired, net: As of ~~June 30, 2022~~March 31, 2023 our ~~VOBA~~value of business acquired asset was ~~$2,564,603~~$2,495,288 compared to ~~$2,610,813~~$2,518,393 as of December 31, ~~2021,~~2022, a decrease of ~~$46,210~~$23,105 or 2%1%. The decrease is the result of amortization of VOBA.

Property, equipment and software, net: As of ~~June 30, 2022~~March 31, 2023 our property, equipment and software assets were ~~$141,491,~~$164,320, an increase of ~~$48,706~~$31,845 from the December 31, ~~2021~~2022 balance of ~~$92,785.~~$132,475. This increase is the result of ~~new purchases offset by amortization~~renovation of ~~these assets.~~our home office.

Goodwill: As of ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, our goodwill was $277,542. Goodwill was established as a result of our merger with NPCC. We have determined that there has been no impairment to our goodwill balance.

Deferred tax asset, net of valuation allowance: The Company had a net deferred tax asset of ~~$1,560,767~~$3,294,522 as of ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021.~~2022. No change in the net deferred tax asset was recorded in the first ~~six months of 2022.~~quarter.

Other assets: As of ~~June 30, 2022,~~March 31, 2023, our other assets were ~~$1,199,014, an increase~~$458,546, a decrease of ~~$616,696~~$13,729 or ~~106%~~3% from the December 31, ~~2021~~2022 balance of ~~$582,318.~~$472,275. This ~~increase was driven by an increase in pre-paid assets and federal income tax receivable.~~decrease is the result of normal business activity.

Liabilities. Our total liabilities were ~~$108,442,577~~$111,548,401 as of ~~June 30, 2022,~~March 31, 2023, an increase of ~~$4,539,499~~$1,319,498 or 4%1% from our December 31, ~~2021~~2022 liabilities of ~~$103,903,078.~~$110,228,903. This increase is driven by ~~growth~~an increase in our ~~policy liabilities.~~accounts payable.

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Policy liabilities: Our total policy liabilities as of ~~June 30, 2022~~March 31, 2023 were ~~$106,384,466~~$109,094,458 compared to ~~$101,026,942~~$108,737,803 as of December 31, ~~2021,~~2022, an increase of ~~$5,357,524~~$356,655 or 5%0%. This increase is the result of the growth of our in-force business.

Accounts payable and accrued expenses: As of ~~June 30, 2022,~~March 31, 2023, our accounts payable and accrued expenses were ~~$223,458~~$1,375,809 compared to ~~$689,065~~$448,805 as of December 31, ~~2021, a decrease~~2022, an increase of ~~$465,607~~$927,004 or ~~68%~~207%. ~~The decrease~~This increase is driven by ~~the payment of federal income taxes payable.~~reinsurance settlement payables.

Federal Home Loan Bank advance: As of ~~June 30,~~March 31, 2023 and December 31, 2022, the Company has outstanding advances of $1,000,000 with the Federal Home Loan Bank of ~~Topeka compared to outstanding advances of $2,000,000 as of December 31, 2021. This decrease is the the result of the Company's repayment f two $500,000 advances during the second quarter.~~

~~Other liabilities~~~~: As of June 30, 2022, our other liabilities were $834,653, an increase of $647,582 from the December 31, 2021 balance of $187,071. The increase is the result of amounts due to reinsurers.~~Topeka.

Shareholders’ Equity. Our shareholders’ equity was ~~$8,489,243~~$9,027,280 as of ~~June 30, 2022, a decrease~~March 31, 2023, an increase of ~~$9,092,513~~$957,886 from our December 31, ~~2021~~2022 shareholders’ equity of ~~$17,581,756.~~$8,069,394. The ~~reduction~~increase in shareholders’ equity was driven by ~~a decrease~~an increase in other comprehensive income (loss) and by our net loss. Other comprehensive income (loss) consists of the unrealized gains and losses on our fixed maturity portfolio. For the six months ended June 30, 2022, the unrealized losses in our fixed maturity portfolio totaled $6,376,810.income. The ~~decrease~~increase in other comprehensive income ~~(loss)~~ is the result of ~~higher interest rates which decreases the~~increased market value of our fixed maturity securities.

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Our investment philosophy is reflected by the allocation of our investments. We emphasize investment grade debt securities with smaller holdings in equity securities, mortgages and other investments. The following table shows the carrying value of our investments by investment category and cash and cash equivalents, and the percentage of each to total invested assets as of ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021.~~2022.

The total value of our investments and cash and cash equivalents ~~decreased~~increased to ~~$104,568,294~~$105,975,970 as of ~~June 30, 2022~~March 31, 2023 from ~~$109,130,451~~$103,727,194 at December 31, ~~2021, a decrease~~2022, an increase of ~~$4,562,157. Decreases~~$2,248,776 or 2%. Increases in investments are primarily attributable to ~~a reduction~~increases in the market value of our ~~fixed maturity~~ securities.

The following table shows the distribution of the credit ratings of our portfolio of fixed maturity securities by carrying value as of ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021.~~2022.

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The amortized cost and fair value of debt securities as of ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, by contractual maturity, are shown below. Equity securities do not have stated maturity dates and therefore are not included in the following maturity summary. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

We hold a diversified portfolio of investments that primarily includes cash, bonds, equity securities, mortgage loans, and ~~funds withheld under the 2020 ALSC Agreement.~~other invested assets. Each of these investments is subject to market risks that can affect their return and their fair value. A significant percentage of the investments are fixed maturity securities including debt issuances of corporations, US Treasury securities, or securities issued by government agencies. The primary market risks affecting the investment portfolio are interest rate risk, credit risk, and equity risk. The Company's investment portfolio, including the creditworthiness and valuation of investment assets, as well as availability of new investments may be adversely affected as a result of market developments related to the COVID-19 pandemic and uncertainty regarding its ultimate severity and duration.

Interest rate risk arises from the price sensitivity of investments to changes in interest rates. Interest represents the greatest portion of an investment's return for most fixed maturity securities in stable interest rate environments. The changes in the fair value of such investments are inversely related to changes in market interest rates. As interest rates fall, the interest and dividend streams of existing fixed-rate investments become more valuable and fair values rise. As interest rates rise, the opposite effect occurs.

We work to mitigate our exposure to adverse interest rate movements through laddering the maturities of the fixed maturity investments and through maintaining cash and other short term investments to assure sufficient liquidity to meet our obligations and to address reinvestment risk considerations. Due to the composition of our book of insurance business, we believe it is unlikely that we would encounter large surrender activity due to an interest rate increase that would force the disposal of fixed maturities at a loss.

Additionally, USALSC is a member of the FHLB of Topeka, which provides access to liquidity and further reduces the likelihood of disposing of fixed maturities at a loss.

We are exposed to credit risk through counterparties and within the investment portfolio. Credit risk relates to the uncertainty associated with an obligor's ability to make timely payments of principal and interest in accordance with the contractual terms of an instrument or contract. We manage our credit risk through established investment policies and guidelines which address the quality of creditors and counterparties, concentration limits, diversification practices and acceptable risk levels. These policies and guidelines are regularly reviewed and approved by senior management and USAC's Board of Directors.

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The impact of COVID-19 on the Company is evolving, and its future effects are not yet quantified. The Company continues to monitor the ~~effects~~affects and risks of COVID-19 to assess its impact on the Company's business, sales, financial condition, results of operations, liquidity and capital position. Death claims have increased ~~by 38%~~18% from ~~the prior year,~~first quarter 2022, but it is currently impossible to quantify the amount of such increase that can be attributed to COVID-19 deaths and deaths not directly attributable to COVID-19.

Premium income, deposits to policyholder account balances, and investment income ~~and capital raising~~ are the primary sources of funds while withdrawals of policyholder account balances, investment purchases, policy benefits in the form of claims, and operating expenses are the primary uses of funds. To ensure we will be able to pay future commitments, the funds received as premium payments and deposits are invested in primarily fixed income securities. Funds are invested with the intent that the income from investments, plus proceeds from maturities, will in the future meet our ongoing cash flow needs. The approach of matching asset and liability durations and yields requires an appropriate mix of investments. Our investments consist primarily of marketable debt securities that could be readily converted to cash for liquidity needs. Cash flow projections and cash flow tests under various market interest scenarios are also performed annually to assist in evaluating liquidity needs and adequacy. As a member of the Federal Home Loan Bank, USALSC has immediate access to additional cash liquidity, if needed.

Net cash provided by operating activities was ~~$1,301,269~~$2,261,828 for the ~~six~~three months ended ~~June 30, 2022.~~March 31, 2023. The primary sources of cash from operating activities were premiums received from policyholders as well as investment income. The primary uses of cash for operating activities were for payments of commissions to agents and settlement of policy liabilities. Net cash used in investing activities was ~~$1,127,725.~~$1,183,871. The primary use of cash was the purchase of fixed maturity, mortgage, ~~loan,~~ and equity investments. Cash ~~provided~~used by financing activities was ~~$1,343,953.~~$1,125,454. The primary ~~sources~~uses of cash were ~~receipts~~surrenders on deposit-type contracts.

At ~~June 30, 2022,~~March 31, 2023, we had cash and cash equivalents totaling ~~$9,472,845.~~$4,044,010. We believe that our existing cash and cash equivalents are sufficient to fund the anticipated operating expenses and capital expenditures for the foreseeable future. We have based this estimate upon assumptions that may prove to be wrong and we could use our capital resources sooner than we currently expect. The growth of USALSC and DCLIC, our insurance subsidiaries, is uncertain and may require additional capital as they continue to grow.

Insurance premiums are established before the amount of losses, or the extent to which inflation may affect such losses and expenses, are known. We attempt, in establishing premiums, to anticipate the potential impact of inflation. If, for competitive reasons, premiums cannot be increased to anticipate inflation, this cost would be absorbed by us. Inflation also affects the rate of investment return on the investment portfolio with a corresponding effect on investment income.

As a “smaller reporting company”, the Company does not provide disclosure pursuant to this item.

We have established disclosure controls and procedures to ensure, among other things, material information relating to our Company, including our consolidated subsidiaries, is made known to our officers who certify our financial reports and to the other members of our senior management and the Board of Directors.

As required by Exchange Act Rule 13a-15(b), management of the Company, including the Chief Executive Officer and the Vice President conducted an evaluation as of the end of the period covered by this report, of the effectiveness of the Company’s disclosure controls and procedures as defined in Exchange Act Rules 13a-15(e). Based upon an evaluation at the end of the period, the Chief Executive Officer and the Vice President concluded that the disclosure controls and procedures are effective in timely alerting them to material information relating to us and our consolidated subsidiaries required to be disclosed in our periodic reports under the exchange act.

There were no changes to the Company’s internal control over financial reporting as defined in Exchange Act Rule 13a-15(f) during the ~~six and~~ three months ended ~~June 30, 2022~~March 31, 2023 that have materially affected, or are reasonably likely to materially affect, the Company’s control over financial reporting.

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We are involved in litigation incidental to our operations from time to time. We are not presently a party to any legal proceedings other than litigation arising in the ordinary course of business, and we are not aware of any claims that could materially affect our financial position or results of operation.

As a “smaller reporting company”, the Company is not required to provide disclosure pursuant to this item.

During the quarter ended ~~June 30, 2022,~~March 31, 2023, the Company did not issue any shares of common stock pursuant to an offering to residents of the state of Kansas that was registered with the Kansas Securities Commissioner.

During the quarter ended ~~June 30, 2022,~~March 31, 2023, the Company ~~issued 250~~did not issue any shares of common stock ~~for aggregate consideration of $1,750,~~ pursuant to a private placement offering to residents of the state of North Dakota (the “North Dakota Offering”). Proceeds from the sale of shares in the North Dakota were used to finance the growth of DCLIC and to provide working capital for the Company. The North Dakota Offering and sales of shares thereunder were not registered with the SEC in reliance on an exemption for registration under Rule 506(b) of Regulation D under this Securities Act of 1933 (“Reg D”). Shares are sold only to “accredited investors”, as that term is defined in Rule 501 of Reg D, and were not sold by any means of general advertisement or solicitation.

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**XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

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Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized

Kansas	26-4824142
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1303 SW First American Pl, Suite 200, Topeka, Kansas	66604
(Address of principal executive offices)	(Zip Code)

Item	Item Description	Page
Item 1	Financial Statements	3

	Consolidated Balance Sheets	3

	Consolidated Statements of Comprehensive Income ~~(Loss~~(Loss))	4

	Consolidated Statements of Changes in Shareholders' Equity	5

	Consolidated Statements of Cash Flows	6

	Notes to Consolidated Financial Statements	8

Item 2	Management's Discussion and Analysis of Financial Condition and Results of Operations	2021

Item 3	Quantitative and Qualitative Disclosures About Market Risk	33

Item 4	Controls and Procedures	33

Part II - Other Information

Item	Item Description	Page
Item 1	Legal Proceedings	34

Item 1A	Risk Factors	34

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	34

Item 3	Defaults Upon Senior Securities	34

Item 4	Mine Safety Disclosures	34

Item 5	Other Information	34

Item 6	Exhibits	35

	Signatures	36

								Accumulated
	Number of							Other
	Shares of		Common		Additional			Comprehensive			Accumulated
	Common Stock		Stock		Paid-in Capital			Income / (Loss)			Deficit			Total
Balance, December 31, 2020		7,741,487	$	774,150	$	23,063,273		$	3,564,875		$	(8,997,507	)	$	18,404,791
Common stock issued, $7 per share		3,917		391		27,028			0			0			27,419
Costs associated with common stock issued		-		0		(92,157	)		0			0			(92,157	)
Other comprehensive loss		-		0		0			(899,223	)		0			(899,223	)
Net loss		-		0		0			0			(121,514	)		(121,514	)
Balance, June 30, 2021		7,745,404	$	774,541	$	22,998,144		$	2,665,652		$	(9,119,021	)	$	17,319,316

Balance, December 31, 2021		7,745,404	$	774,541	$	22,948,637		$	2,521,730		$	(8,663,152	)	$	17,581,756
Common stock issued, $7 per share		1,518		152		10,474			0			0			10,626
Costs associated with common stock issued		-		0		(3,653	)		0			0			(3,653	)
Other comprehensive loss		-		0		0			(6,376,810	)		0			(6,376,810	)
Net loss		-		0		0			0			(2,722,676	)		(2,722,676	)
Balance, June 30, 2022		7,746,922	$	774,693	$	22,955,458		$	(3,855,080	)	$	(11,385,828	)	$	8,489,243

								Accumulated																Accumulated
	Number of							Other									Number of							Other
	Shares of		Common		Additional			Comprehensive			Accumulated						Shares of		Common		Additional			Comprehensive			Accumulated
	Common Stock		Stock		Paid-in Capital			Income / (Loss)			Deficit			Total			Common Stock		Stock		Paid-in Capital			Income (Loss)			Deficit			Total
Balance, March 31, 2021		7,742,573	$	774,258	$	23,023,211		$	1,299,026		$	(9,333,724	)	$	15,762,771
Common stock issued, $7 per share		2,831		283		19,534			0			0			19,817
Costs associated with common stock issued		-		0		(44,601	)		0			0			(44,601	)
Other comprehensive income		-		0		0			1,366,626			0			1,366,626
Net income		-		0		0			0			214,703			214,703
Balance, June 30, 2021		7,745,404	$	774,541	$	22,998,144		$	2,665,652		$	(9,119,021	)	$	17,319,316

Balance, March 31, 2022		7,746,672	$	774,668	$	22,955,681		$	(696,331	)	$	(9,810,583	)	$	13,223,435
Balance, December 31, 2021																		7,745,404	$	774,541	$	22,948,637		$	2,521,730		$	(8,663,152	)	$	17,581,756
Common stock issued, $7 per share		250		25		1,725			0			0			1,750			1,268		127		8,749			-			-			8,876
Costs associated with common stock issued		-		0		(1,948	)		0			0			(1,948	)		-		-		(1,705	)		-			-			(1,705	)
Other comprehensive loss		-		0		0			(3,158,749	)		0			(3,158,749	)		-		-		-			(3,218,061	)		-			(3,218,061	)
Net loss		-		0		0			0			(1,575,245	)		(1,575,245	)		-		-		-			-			(1,147,431	)		(1,147,431	)
Balance, June 30, 2022		7,746,922	$	774,693	$	22,955,458		$	(3,855,080	)	$	(11,385,828	)	$	8,489,243
Balance, March 31, 2022																		7,746,672	$	774,668	$	22,955,681		$	(696,331	)	$	(9,810,583	)	$	13,223,435
																													��
Balance, December 31, 2022																		7,746,922	$	774,693	$	22,955,458		$	(3,841,120	)	$	(11,819,637	)	$	8,069,394
Other comprehensive income																		-		-		-			832,808			-			832,808
Cumulative effect of changes in accounting principal																		-		-		-			-			(150,373	)		(150,373	)
Net income																		-		-		-			-			275,451			275,451
Balance, March 31, 2023																		7,746,922	$	774,693	$	22,955,458		$	(3,008,312	)	$	(11,694,559	)	$	9,027,280

													Three Months Ended March 31,
	Six Months Ended June 30,						Three Months Ended June 30,						2023		2022
	2022			2021			2022			2021			(unaudited)
Income:	*(unaudited)*						*(unaudited)*
Premium income	$	6,726,209		$	6,352,098		$	3,363,953		$	3,304,921		$	3,341,325	$	3,362,256
Net investment income		2,570,687			2,631,572			1,419,065			1,332,580			1,505,610		1,151,622
Net investment gains (losses)		(2,154,307	)		73,790			(1,421,654	)		191,122			347,102		(732,653	)
Other income		160,186			157,402			80,621			77,974			83,788		79,565
Total income		7,302,775			9,214,862			3,441,985			4,906,597			5,277,825		3,860,790

Expenses:
Death claims		1,525,175			1,101,796			727,887			530,632			941,702		797,288
Policyholder benefits		3,613,384			3,448,788			1,953,399			1,745,769			1,564,035		1,659,985
Increase in policyholder reserves		2,143,630			2,332,241			947,280			1,145,738			1,047,878		1,196,350
Commissions, net of deferrals		392,215			373,461			201,881			194,253			171,731		190,334
Amortization of deferred acquisition costs		581,904			554,865			306,206			284,808			367,122		275,698
Amortization of value of business acquired		46,210			46,210			23,105			23,105			23,105		23,105
Salaries & benefits		684,320			538,195			360,261			282,167			363,288		324,059
Other operating expenses		1,038,613			940,820			497,211			485,422			523,513		541,402
Total expense		10,025,451			9,336,376			5,017,230			4,691,894			5,002,374		5,008,221

Net income (loss)	$	(2,722,676	)	$	(121,514	)	$	(1,575,245	)	$	214,703		$	275,451	$	(1,147,431	)

Net income (loss) per common share, basic and diluted	$	(0.35	)	$	(0.02	)	$	(0.20	)	$	0.03		$	0.04	$	(0.15	)


Unrealized net holding gains (losses) arising during the period, net of tax		(6,376,041	)		(786,174	)		(3,157,631	)		1,493,525			832,285		(3,218,556	)
Reclassification adjustment for gains included in net income (loss)		(769	)		(113,049	)		(1,118	)		(126,899	)
Reclassification adjustment for losses included in net income (loss)														523		495

Other comprehensive income (loss)		(6,376,810	)		(899,223	)		(3,158,749	)		1,366,626			832,808		(3,218,061	)

Comprehensive income (loss)	$	(9,099,486	)	$	(1,020,737	)	$	(4,733,994	)	$	1,581,329		$	1,108,259	$	(4,365,492	)

	Six Months Ended June 30,
	2022			2021
	(unaudited)
Fixed maturities	$	559,262		$	553,641
Mortgages		116,350			189,259
Equity securities		312,498			302,641
Funds withheld		1,621,509			1,649,276
Cash and cash equivalents		5,471			868
		2,615,090			2,695,685
Less investment expenses		(44,403	)		(64,113	)
	$	2,570,687		$	2,631,572

For the Six Months Ended June 30, 2022	Corporate		Funds
	Bonds		Withheld
Fair value, beginning of period	$	181,600	$	544,768
Investment related losses		0		(691,300	)
Fair value, end of period	$	181,600	$	(146,532	)

	December 31, 2021
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	7,955,348	$	7,955,348	$	7,955,348	$	0	$	0
Mortgage loans on real estate		3,653,142		3,653,142		0		0		3,653,142
Investment income due and accrued		698,504		698,504		0		0		698,504
Funds withheld		48,474,206		49,018,974		0		0		49,018,974
Policy loans		173,341		173,341		0		0		173,341
Total Financial Assets (excluding available for sale investments)	$	60,954,541	$	61,499,309	$	7,955,348	$	0	$	53,543,961

Financial Liabilities:
Federal Home Loan Bank advance	$	2,000,000	$	2,000,000	$	0	$	0	$	2,000,000
Policyholder deposits in deposit-type contracts		75,567,873		78,359,733		0		0		78,359,733
Total Financial Liabilities	$	77,567,873	$	80,359,733	$	0	$	0	$	80,359,733

	Three Months ended June 30,
	2022			2021
	(unaudited)
Direct	$	2,418,559		$	2,374,338
Assumed		1,235,113			1,174,607
Ceded		(289,719	)		(244,024	)
Total	$	3,363,953		$	3,304,921

3.1	Articles of Incorporation of US Alliance Corporation (filed as Exhibit 3.1 to the Company’s Registration Statement on Form 10 filed on May 2, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 3.1)

3.1.1	First Amendment to Articles of Incorporation of US Alliance Corporation, filed as Exhibit 3.1.1 to the Company's Current Report on Form 8-K filed on June 9, 2017 (File No. 000-55627), is incorporated herein by reference a Exhibit 3.1.1.

3.1.2	Second Amendment to Articles of Incorporation of US Alliance Corporation, filed as Exhibit 3.1.2 to the Company's Current Report on Form 8-K filed on June 9, 2017 (File No. 000-55627), is incorporated herein by reference as Exhibit 3.1.2.

3.2	Bylaws of US Alliance Corporation (filed as Exhibit 3.2 to the Company’s Registration Statement on Form 10 filed on May 2, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 3.2).

3.2.1	Amendment No. 1. to the bylaws of US Alliance Corporation, filed as Exhibit 3.2 to the Company's Current Report on Form 8-K filed on June 9, 2017 (File No. 000-55627), is incorporated herein by reference as Exhibit 3.2.1.

31.1*	Certification of Chief Executive Officer of US Alliance Corporation pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*	Certification of Principal Financial Officer of US Alliance Corporation pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1*	Certifications of the Chief Executive Officer of US Alliance pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2*	Certifications of the Principal Financial Officer of US Alliance pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS**	Inline XBRL Instance

101.SCH**	Inline XBRL Taxonomy Extension Schema

101.CAL**	Inline XBRL Taxonomy Extension Calculation

101.DEF**	Inline XBRL Taxonomy Extension Definition

101.LAB**	Inline XBRL Taxonomy Extension Labels

101.PRE**	Inline XBRL Taxonomy ~~Extention~~Extension Presentation

104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

		US Alliance
		Corporation
		(Registrant)

	Date	~~August 11, 2022~~ May 15, 2023
	By	/s/ Jack H. Brier
		Jack H. Brier, President and Chairman